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Cablegate: Turkey-Greece-Italy Pipeline - Edison Discussions

VZCZCXRO9150
PP RUEHAG RUEHDF RUEHIK RUEHLZ
DE RUEHRO #2699 2681545
ZNR UUUUU ZZH
P 251545Z SEP 06
FM AMEMBASSY ROME
TO RUEHC/SECSTATE WASHDC PRIORITY 6047
INFO RUCNMEM/EU MEMBER STATES COLLECTIVE PRIORITY
RUEHAK/AMEMBASSY ANKARA PRIORITY 3165
RUEHKB/AMEMBASSY BAKU PRIORITY 0087
RUEHSI/AMEMBASSY TBILISI PRIORITY 0210
RUEHMIL/AMCONSUL MILAN PRIORITY 7713
RUEHFL/AMCONSUL FLORENCE PRIORITY 1762
RUEHNP/AMCONSUL NAPLES PRIORITY 1875
RHEBAAA/DEPT OF ENERGY WASHDC PRIORITY

UNCLAS ROME 002699

SIPDIS

SIPDIS

DEPT FOR EUR DAS BRYZA AND EB DAS SIMONS
MILAN FOR BROUILLETTE-RODRIGUEZ

E.O. 12958: N/A
TAGS: EPET ENRG ETRD AJ AL RS TU GR IR IT
SUBJECT: TURKEY-GREECE-ITALY PIPELINE - EDISON DISCUSSIONS
WITH TURKEY

REF: ROME 2698

1. Roberto Poti, Edison Vice President for Business
Development, called EconCounselor September 18 to relate
details of his September 11 meeting with Turkish Energy
Minister Hilmi Guler regarding the Turkey-Greece-Italy (TGI)
pipeline construction.

2. Poti described the meeting as "very positive." Guler
reportedly confirmed the GOT,s commitment to the TGI project
and said Turkey wishes to re-open negotiations to formalize a
"transit" contract for Azeri gas exported to Greece and Italy
via Turkey. Guler said he had spoken with EUR DAS Bryza and
told Bryza that Turkey's first priority is completion of the
TGI, even if Turkey is only able to participate as a transit
country. (Note: As reported reftel, a principal concern for
Edison regarding the TGI is Turkey's desire to become not
only a transit country for natural gas, but also a
seller/distributor. End Note.)

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3. Guler also said the GOT wants to consider becoming a
signatory to the Italian-Greek intergovernmental agreement
regarding the TGI as a way to speed completion of the
pipeline. (Note: This bilateral framework agreement, signed
November 4, 2005, commits both governments to spur TGI
completion by quickly providing all the necessary government
permits. Our understanding is that the agreement does not
address how the construction will be funded. End note.)

4. On the issue of what gas the TGI will carry, Guler
reportedly told Poti that Turkey places a priority on the
TGI's carrying Azeri natural gas, and specifically stated
that the GOT "would have problems" with the export of Iranian
natural gas via the TGI.
SPOGLI

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